Treatment for anxiety, depression, burnout or another mental health issue – with a psychologist or psychiatrist – now touches a significant share of families, yet many worry that it will stop them from taking out term life insurance, or avoid even starting the process because they are afraid of the questions. In most cases the picture is more nuanced than the fear suggests: mental health treatment on its own is typically not a reason for exclusion, but it does call for an accurate, honest declaration.
- The fact of having had mental health treatment is on its own typically not a reason for exclusion – what matters is the diagnosis, its course, and your current state.
- Insurers' underwriting practice varies especially widely in this area – making it one of the areas where it pays most to compare offers.
- The duty of disclosure applies here just as everywhere else: an honest, accurate declaration is the foundation for the security of a future payout.
How does underwriting view this?
The insurer is not looking for the answer to "have you ever seen a psychologist" – the details are what matter: the diagnosis, how long it has been present, what treatment involved (medication, therapy, or just a handful of consultations), whether it led to hospital care or a longer period of sick leave, and how long the condition has been stable. A short, situational anxiety episode closed a few years ago is assessed quite differently from a longer-standing condition that is still being treated. We have written about the general underwriting process in a separate article.
What outcomes are possible?
The possible responses are the same as for any health question: standard acceptance – typically for closed, durably stable cases – a premium loading, excluding certain risks from cover (for example disability or incapacity for work linked to the condition), or – for a recent, still-settling condition – postponing the decision. None of these outcomes automatically means a full decline: the base death cover and any riders unrelated to the mental health condition often remain unaffected. More on the possible outcomes: loading or decline – what can you do?
Why does it pay to declare accurately and honestly?
Leaving something out is not a loophole here either – it is a risk with a delay on it. If a treated, documented condition is not disclosed in the declaration, and this later comes to light – even at a claim for a completely unrelated reason – a breach of the duty of disclosure can, under the rules in force, put the payout at risk – if the undisclosed circumstance contributed to the event that occurred (it is for the policyholder to prove that it did not) and five years have not yet passed between the conclusion of the contract and the insured event; after that, the insurer can no longer invoke the failure to disclose – which is exactly what the policy was meant to protect against. An accurate, documented declaration, by contrast, gives the insurer a reassuring picture too: a closed or well-managed condition is usually far easier to accept than an incompletely filled-in declaration that raises suspicion. More on the duty of disclosure: the duty of disclosure, honestly.
What is worth preparing in advance?
It helps to have to hand the approximate duration of the treatment and – if it has ended – the date it closed, the name and duration of any medication, and, if there was hospital care or a period of sick leave, its dates. There is no need to use medical jargon: the general tips gathered in our declaration prep guide – accuracy, completeness, answering the questions literally – apply equally well to this area.
If you were declined or offered cover with a loading before
It is a common situation: someone was declined, or offered cover only with a high loading, years ago because of a condition that was then still recent or unsettled – and it has not crossed their mind since to try again. But underwriting is not a one-off, final verdict: if the condition has since closed, stabilised, or simply a few treatment-free years have passed, it can be worth asking the market again with a fresh, up-to-date declaration – an earlier decline does not on its own rule out a different result today.
Strategy: when and how is it worth approaching this?
Because underwriting practice varies significantly between insurers – what one accepts with a loading, another may accept on standard terms – it is especially worthwhile in this area to request quotes from several insurers at once, using the same accurate declaration. As your broker, I run this round for you: the content of the declaration goes directly to the insurers, and I compare the outcomes in a single, clear table – the aim is that you do not have to face the topic alone, again and again.
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